Rectification requests of e fled Income Tax Return

By | June 6, 2016

Rectification requests of Income tax Return under Income Tax Act

Rectification requests procedure

PRESS RELEASE, DATED 1-4-2016

Income-tax Act provides the taxpayer with an option to seek rectification of mistakes apparent from record under section 154 of the Act. The e-filing portal of the Income Tax Department provides the utility for online filing and tracking of rectification requests. Taxpayers who are not satisfied with the outcome of processing of their Income Tax Return by the Centralized Processing Centre, Bengaluru can avail of the facility of online filing and tracking of rectification requests available on https://incometaxindiaefiling.gov.in.

Related post : Step by step guide of Rectification Request for Income Tax Return

In case of any mistake in data entry of Tax payment or TDS details, taxpayer can select the “Rectification Request Type → Taxpayer is correcting data for Tax Credit mismatch only” and the use the option of pre-filling the correct details for the relevant Assessment Year while submitting the rectification request.

In case of data entry mistake in any other Schedule or omission of any details, taxpayer can select the option “Taxpayer is correcting Data in Rectification” and the reason for seeking rectification.

In any other case taxpayer can select the option “No further Data Correction Required, Reprocess the case” where the mistake in processing may have occurred due to non-reporting of TDS by deductor etc.

A detailed user manual for filing online rectification is available at: http://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/Rectifcation_Manual.pdf? 0.08833787460862363.

With this utility a taxpayer can also the monitor the status of disposal of rectification request.

Online Rectification requests of incorrect TDS

Central Board of Direct Taxes has simplified the process of online rectification of incorrect TDS details filed in the Income Tax Return. Taxpayers were required to fill in complete details of the entire TDS schedule while applying for rectification on the e-filing portal of the Income-tax Department (www.incometaxindiaefiling.gov.in). Errors due to incomplete TDS details in rectification applications were leading to delays in processing of such applications thereby causing hardship to the taxpayers.

Related post : Step by step guide of Rectification Request for Income Tax Return

To avoid this inconvenience, a new facility has been provided for pre-filling of TDS schedule while submitting online rectification request on the e-filing portal to facilitate easy correction or up-dating of TDS details. This is expected to considerably ease the burden of compliance on the taxpayers seeking rectification due to TDS mismatch.

Rectification requests to Assessing Officer in case of TDS Mismatch

a) If the taxpayer’s reply or Departmental records show that the demand is on account of TDS mismatch and TDS credits are available in the system, the AO should follow steps as under:

i. The AO should reduce the demand by passing rectification order u/s 154 on the system after taking into account the TDS credits available on the system.

ii. If the demand is prior to 01/04/2010, the demand has to be reduced directly on the CPC-FAS system after rectification u/s 154.

(b)  If the credits are not available in 26AS: The reduction can be done only in the cases of Individuals and HUFs. Further, the amount of reduction should not exceed Rs. 1,00,000/- for that AY and AO should take following steps:

i. AO should pass order u/s 154 manually after obtaining the TDS certificate from the assessee on the basis of which claim has been made.

ii. In case, the outstanding demand is more than Rs.25,000 for that AY, irrespective of the quantum of demand being reduced, the AO should obtain an indemnity bond (in the format given inAnnexure A)

iii.  Additionally, in case the demand being reduced under paragraph 4.2.(b).i above, exceeds Rs.50,000/- for that AY for the assessee, besides obtaining the indemnity bond, approval of Range Head should be taken or file before removing/reducing the demand.

Rectification requests in case of Arrear Demand / Outstanding Tax Demand

Action To be performed by Taxpayers

i. Login to e-Filing website with User ID, Password, Date of Birth /Date of Incorporation and Captcha.

ii. Go to E-file menu and click on “Response to Outstanding Tax Demand”.

iii. Following details would be displayed.

♦             Assessment Year

♦             Section Code

♦             Demand Identification Number (DIN)

♦             Date on which demand is raised

♦             Outstanding demand amount

♦             Uploaded By

♦             Rectification Rights

♦             Response- Submit and View

iv. Taxpayer must click on “Submit” link under Response column for the respective AY in order to submit the response. Taxpayer has to select one of the options from the radio button.

♦             Demand is correct

♦             Demand is partially correct

♦             Disagree with demand

v. If taxpayer selects “Demand is correct”, then a pop up is displayed as “If you confirm “Demand is correct’ then you cannot ‘Disagree with the demand’. (Click on “Submit”. A success message is displayed.

♦             If any refund is due, the outstanding demand along with interest will be adjusted against the refund due.

♦             In any other case taxpayer has to immediately pay the demand.

vi. It taxpayer selects “Demand is partially correct”, then “Amount which is correct” and “Amount which is incorrect” has to entered.

vii.  If taxpayer selects ‘amount which is incorrect’ then he should mandatorily fill one or more reasons for stating so as listed below:

♦             Demand has been already Paid—

-Demand paid and Challan has CIN (Challan Identification Number )

-Demand paid and Challan has no CIN

♦             Demand has already been reduced by rectification/revision

♦             Demand has already been reduced by Appellate Order but appeal effect has to be given by Department

♦             Appeal has been filed and

-Stay petition has been filed with

-Stay has been granted by

-Instalment has been granted by

♦             Rectification / Revised Return has been filed at CPC

♦             Rectification has been filed with Assessing Officer

♦             Others

viii.         Based on the reasons selected, the taxpayer needs to provide additional information as per the table given below.

Reason Selected   Additional Details Required
Demand paid and Challan has CIN BSR Code
Date of payment
Serial Number of challan
Amount
Remarks (any comments of taxpayer can be included)
Demand paid and Challan has no CIN Date of payment
Amount
Remarks (any comments of taxpayer can be included)
Upload copy of Challan
Demand already reduced by rectification / Revision Date of Order
Demand after rectification/ revision
Details of AO who has rectified or revised
Upload Rectification / Giving appeal effect order passed by AO
Demand already reduced by Appellate Order but appeal effect to be given Date of Order
Appellate Order passed by (details of CIT(A) etc)
Reference Number of Order
Appeal has been filed: Stay petition has been filed Date of filing of appeal
Appeal Pending with (derails of CIT (A) etc)
Stay petition filed with (details of office etc)
Appeal has been filed: Stay has been granted Date of filing of appeal
Appeal Pending with
Stay granted by
Upload copy of Stay Order
Appeal has been filed Instalment has been granted Date of filing of appeal
Appeal Pending with (details of CIT (A) etc)
Instalment granted by (details of office etc)
Upload copy of stay/instalment order
Rectification / Revised Return filed at CPC Filing Type
e-Filed Acknowledgement No.
Remarks (any comments of taxpayer can be included)
Upload Challan Copy
Upload TDS Certificate
Upload Letter requesting rectification copy
Upload Indemnity Bond
Rectification filed with AO  Date of application
Remarks (any comments of taxpayer can be included)
Other Reasons Others (any comments of taxpayer can be included)

ix. If taxpayer selects “Disagree with the Demand”, then taxpayer must furnish the details of disagreement along with reasons. Details / Reasons are same as provided under “Demand is partially correct”.

x. After the taxpayer submits the response the success screen would be displayed along with the Transaction ID.

xi. The taxpayers can click on ‘View’ link under Response column to view the response submitted. The following details are displayed:

♦             Serial Number

♦             Transaction ID

♦             Date of Response

♦             Response Type

(Note 1: Where the taxpayer has not registered on the Income Tax Department’s e-filing website – www.incometaxindiaefiling.gov.in, he may do so to get details of outstanding demand and also to submit any response.

Note 2: Wherever the taxpayer finds It difficult to access Income Tax Department Website, he or she may make necessary application to the Assessing Officer along with above referred details as applicable in this case.

Note 3: If CIN is not available or payment is made prior to the period of introduction of CIN, the reduction can be made only in case of individuals and HUFs provided outstanding demand does not exceed Rs.1,00,000 for that AY. The Assessing Officer (AO) should follow the steps as under:

i. The reduction can be made after obtaining of the document showing evidence of payment in form of taxpayer counterfoil or bank certificate or any communication from Department in respect of payment or adjustment of refund. In case where taxpayer is a senior citizen and taxpayer is not able to obtain bank certificate as the place of payment of tax is different from the current place of taxpayer, the Assessing Officer (AO) should obtain the certificate from the bank directly.

ii. In case the outstanding demand is more than Rs. 25000/- for that AY irrespective of the quantum of demand being reduced under paragraph .i. above, the AO should obtain an indemnity bond (in the format given in ANNEXURE A) from the taxpayer.

iii.           Additionally, in case the demand being reduced under paragraph .i. above exceeds Rs.50,000/- for that AY for the assessee, besides obtaining the indemnity bond, approval of Range Head should be taken on file before removing/reducing the demand.

iv. if the payment relates to mismatch of advance tax or self assessment tax, order u/s 154 of the Act needs to be passed by the AO

ANNEXURE A

Format for Indemnity Bond (to be typed on non-judicial Stamp Paper of Rs. 100):

INDEMNITY BOND

This Bond of indemnity is made this . . . . . . . . . . . (Date of indemnity Bond) in favour of Government of India (Department of Finance) i.e. Income Tax Department by Mr./Mrs/Ms. . . . . . . . . . . . . . . . . . . . . . (Name of the Indemnifier) Son of/Daughter of/ Wife of . . . . . . . . . . . on behalf of self or M/s . . . . . . . . . . . . . . .

PAN . . . . . . . . . . .

Status . . . . . . . . . . .

WHEREAS This is to undertake:

1. That I had filed my Income Tax Return for the Assessment Year . . . . . . . . . . .

2. That TDS claimed in the return of Rs. . . . . . . . . . . . belongs to me as per TDS certificates mentioned below

Name of Deductor, TAN of deductor, Date of TDS certificate, Amount

a. . . . . . . . . . . . . . . . . . .
b. . . . . . . . . . . . . . . . . . .

OR

That Challan(s) paid for Rs. . . . . . . . . . . . . . . . . . . belongs to me as given below:

Date of Payment, Bank through which payment made, Amount

a. . . . . . . . . . . . . . . . . . .
b. . . . . . . . . . . . . . . . . . .

3. That in case it is found that the TDS certificates / Challan does not belong to me then the executor of this bond indemnify the Government of India (Ministry of Finance) for the loss, claim and excess amount of refund, if any, in all respect.

The executor of this bond indemnifies the Government of India (Ministry of Finance) and keep it indemnified against all costs, damages, charges and expenses, Excess amount of refund, interest, reduction in demand and also against all sum/money, whether for damages, costs, charges, expenses or otherwise.

In witness where of this bond is executed today this . . . . . . . . . . . . . . . . . . (Date)

(. . . . . . . . . . . . .)

. . . . . . . . . . . . .

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